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DOL issues proposed white-collar overtime rule

July 1st, 2015  |  Lisa Milam-Perez

By Lisa Milam-Perez, J.D.

The Department of Labor on Tuesday, June 30 unofficially released its long-anticipated proposed rule to amend the FLSA’s overtime regulation (specifically, 29 CFR Part 541, the “white-collar” regulation, which defines the executive, administrative, professional, outside sales, and computer employee exemptions from overtime). The most significant change: The rule would more than double—from $23,660 to $50,440, as projected for 2016—the current floor below which the white-collar exemptions from overtime would not apply. It also would increase from $100,000 to $122,148 the pay required for Part 541’s “highly compensated employee” exemption to apply.

According to the White House, in a statement announcing the impending release of the Notice of Proposed Rulemaking, 5 million additional workers will be entitled to overtime within the first year alone, just by virtue of the increased salary threshold.

The value of the FLSA has “atrophied,” said Labor Secretary Thomas Perez in a press call Tuesday morning with reporters. “The FLSA has lost some of its luster. This rule is meant to restore that luster.”

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